The UK light commercial vehicle market saw significant growth in September, marking the second consecutive month of increases.
- Registrations rose by 8.3%, making it the best September in four years for new vans, 4x4s, and pickups.
- Despite the overall market growth, battery electric vehicle (BEV) registrations fell for the fourth month in a row.
- The increase in new medium and smallest vans was notable, yet larger vans dominated the market share.
- Challenges in EV adoption persist, notably due to cost and infrastructure issues, as highlighted by industry leaders.
The month of September saw the UK’s light commercial vehicle market thrive, as numbers rose by 8.3%, recording the best performance for this period in the last four years. This upward trend was bolstered by substantial fleet renewal investments. Notably, the introduction of the new ’74’ numberplate played a pivotal role in this growth.
With 48,455 new vans, 4x4s, and pickups registered in September, the market’s momentum was evident. The year-to-date figures reached 267,339 new LCVs, reflecting a 3.6% increase from the previous year and the strongest volume since 2019. The demand for smaller vans surged remarkably by 34.1%, accounting for 1,180 registrations, while medium-sized vans saw a 34.8% increase, translating to 9,552 units. However, larger models remained dominant with 31,645 units, representing 65.3% of the market share.
Despite these positive figures, the demand for battery electric vehicles (BEVs) witnessed a contraction. September marked the fourth consecutive month of declining BEV registrations, with a 0.5% decrease to 3,020 units. The drop was more pronounced for BEVs below 3.5 tonnes, which fell by 19% to 2,342 registrations. An exception was seen in new rigid BEVs between 3.5 and 4.25 tonnes, which soared by 346% to 678 units, showcasing a specific yet limited growth area.
Industry executives, like Mike Hawes from the Society of Motor Manufacturers and Traders (SMMT), emphasize that achieving decarbonisation targets is contingent upon making the switch to BEVs commercially viable. The persistent higher costs of BEVs compared to their conventional counterparts and inadequate charging infrastructure—particularly tailored for vans—pose significant barriers. In response, the SMMT and key automotive players have proposed several fiscal incentives and reforms to the government, aiming to expedite the transition towards electric vans.
These proposals include extending the Plug-in Van Grant beyond 2025, equalising VAT rates for public and home charging, and mandating infrastructure targets to accommodate those without home charging capabilities. The SMMT warns that unless these steps are taken, the UK’s ambitious zero emission mandates might not be met at the required pace.
The need for focused fiscal and infrastructure support is crucial to accelerate the UK’s transition to electric vans.
